Sprint debt rally continues ahead of numbers; SandRidge slammed on draw; Peabody firms

By Stephanie N. Rotondo

Seattle, Jan. 25 – The distressed debt market was a mixed bag on Monday as equities and commodities continued to wane.

Sprint Nextel Corp. remained busy as the market prepares for the company’s earnings release on Tuesday – an event that was moved up a week after investors trounced the bonds and stock on concerns surrounding the company’s turnaround plan. On Monday, the Overland Park, Kan.-based telecommunications provider said it was reducing its workforce as part of its plan to cut costs by $2.5 billion.

As for the commodity space, oil producer SandRidge Energy Inc. saw its bonds decline after the company said it had maxed out a credit line in to shore up liquidity.

In the coal arena, Peabody Energy Corp. debt inched higher as the company disclosed details on talks with noteholders regarding a potential exchange offer.

Steelmaker AK Steel Holdings Corp. ticked up a touch ahead of its earnings released on Tuesday.

One trader said the 7 5/8% notes due 2020 improved a quarter-point to 35˝, while another market source deemed the debt half a point higher at 35 bid.

Retailers were trending positive.

A trader said Men’s Wearhouse Inc.’s 7% notes due 2022 gained over a point on the day, ending at 65.

Toys “R” Us Inc.’s 7 3/8% notes due 2018 were seen rising a deuce to 62 bid, as JCPenney Co. Inc.’s 5.65% notes due 2020 moved up 1˝ points to 82˝ bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.